Solana Lending Product Lets Borrowed Assets Earn Trading Fees

Jupiter's new Solana lending product, Lend v2, is making waves in the DeFi space by allowing borrowed assets to earn trading fees. This innovative feature combines two previously separate ways of earning returns: lending and liquidity provision.

The Smart Debt feature of Lend v2 enables users to deploy their borrowed assets as DEX liquidity, potentially offsetting some or all of the interest charged on the debt. Meanwhile, the Lifetime PnL feature gives users a historical view of their position's performance, combining lending yield, borrowing costs, and trading fees.

Jupiter COO Kash Dhanda explained that Lend v2 'brings down the wall' between lending and liquidity provision by letting users opt in to using their assets as both lending and AMM liquidity at the same time.